Here’s another refined rewrite with a tighter newsroom flow:
Bitcoin’s drop to its weakest level since late 2024 reflects a combination of tighter Federal Reserve policy, sustained ETF outflows, and a broader rotation of capital into artificial intelligence, according to Deutsche Bank.
BTC’s fall below $60,000 on June 5 marked its lowest point since late 2024, highlighting what the bank describes as overlapping macroeconomic and structural pressures. Deutsche Bank said Bitcoin is increasingly trading as an institutional risk asset rather than a retail-driven speculative instrument.
The bank linked the recent selloff to a more hawkish Fed outlook, continued withdrawals from U.S. spot Bitcoin ETFs, a sentiment shock following Strategy’s first BTC sale since 2022, and growing investor allocation toward AI-related assets.
“Bitcoin is not disappearing; it is maturing into an institutional asset whose price is set by fund flows, Fed expectations, competing risk themes, and legislative outcomes,” analyst Marion Laboure wrote.
Bitcoin has remained under pressure in recent weeks, briefly slipping below $60,000 before rebounding into the $62,000–$63,000 range. It is still more than 50% below its October 2025 peak, weighed down by tighter monetary policy expectations and weak risk appetite.
While some stabilization has emerged, analysts say Bitcoin’s near-term direction will depend on whether institutional demand returns and macro conditions improve.
Deutsche Bank economists now expect the Federal Reserve to raise rates twice in 2026, reversing earlier expectations of policy easing. The shift removes a key support that previously benefited Bitcoin and other risk assets.
The bank also noted that U.S. spot Bitcoin ETFs have recorded six consecutive weeks of net outflows totaling around $6 billion. As ETF flows have become a major price driver, the reversal has added significant downside pressure.
Laboure added that AI investment is also competing for capital, with U.S. tech giants projected to spend more than $700 billion on AI infrastructure in 2026. Investors are increasingly weighing Bitcoin against AI-linked equities when allocating speculative capital.
“The marginal buyer is no longer a retail investor but an ETF allocator or corporate treasury,” she said, noting that capital is increasingly shifting toward AI themes.
At the time of writing, Bitcoin was down about 3.5% over 24 hours, trading near $62,600.
